Americas Market Update 21 Sep

Fuel prices have moved in mixed directions, and operations have been suspended in Zona Comun.

IMAGE: Cargo port with cranes and shipping containers along the entrance to the Panama Canal. Getty Images

Changes on the day from Friday to 08.00 CDT (13.00 GMT) today:

• VLSFO prices up in Balboa ($31/mt) and New York ($7/mt), unchanged in Houston, and down in Los Angeles ($28/mt) and Zona Comun ($4/mt)
• LSMGO prices up in Houston ($12/mt) and Balboa ($10/mt), and down in Los Angeles ($18/mt), New York ($6/mt) and Zona Comun ($5/mt)
• HSFO prices up in Balboa ($36/mt), Houston ($8/mt) and Los Angeles ($1/mt), and down in New York ($4/mt)

Balboa has recorded gains across all three fuel grades, despite Brent's downward move over the past session.

A higher-priced 150-500 mt, LSMGO stem, fixed at Balboa at $1,589/mt, has pushed the benchmark up.

Availability is good in Balboa and Cristobal, where all three conventional fuel grades require lead times of 3-4 days from most suppliers.

In Argentina's Zona Comun, bunkering operations have been suspended due to high wind gusts at the anchorage.

The suspension could result in prolonged delays over the next several days, with some windows allowing deliveries, a source tells ENGINE.

Brent

The front-month ICE Brent contract has lost $2.77/bbl on the day from Friday, trading at $101.12/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude’s price has felt some upward pressure as supply-related risks continue to persist.

The US President Donald Trump has issued fresh warnings, stating that Iran risks being “wiped out” entirely, if it does not comply with Washington’s demands.

In response, Iranian military said further attacks will trigger retaliation against US bases in the region and ​Washington's allies will be considered parties to the conflict.

“The broadening of the Middle East conflict also increases the odds of the conflict persisting for the foreseeable future, and keeping oil supply from the Persian Gulf constrained,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent crude’s price has started the week on a soft note, as the market sets its sights on the United Nations General Assembly (UNGA) summit, scheduled to take place in New York later this week.

The meeting will be attended by Iranian President Masoud Pezeshkian. Traders are quietly betting that the high-stakes diplomacy could yield a breakthrough, potentially easing some supply disruptions.

In other news, Trump will hold a high-stakes summit in Washington with Chinese counterpart Xi Jinping on 24 September.

The news has lifted some market confidence as a dialogue between the world's two top economic superpowers could stabilise trade corridors that are currently in fragile conditions.

“Hopes for constructive discussions at this week's UN General Assembly (UNGA) and the upcoming Trump-Xi meeting, helped improve market sentiment,” two analysts from ING Bank reported.

By Gautamee Hazarika and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online